What to do next?

ej_blondie

Hi,
I recently had a house repossessed and have been waiting for it to sell. It has now sold for £90,000 and we originally bought it for £115,000, leaving a deficit of £39,000 including interest and charges from the repossession.
I now don't know what to do. I can't stand the thought of this debt hanging around my neck. And without the repossession I was coping fine paying off my personal loan and credit cards, from my student days, which were starting to decrease nicely, leaving me with a little money each month for myself. But this is what I am worried about; if it looks like I am coping on paper and the mortgage company try to set up an attachment of earnings, I'll be left with very little each month, when I'm looking to try and start a family.
The only other option is bankruptcy but I don't know if I will qualify as on paper I can afford my current outgoings. Yet with £39,000 of debt on the mortgage that is simply not the case.
I have no assets or savings or anything of value so I can't clear even a portion of it. But also, I don't just want to stop paying my bills as I have always paid on time. Yet I can't afford the bankruptcy fees unless I default on my credit card and loan payments.
I'm sure I'm not the only person to have felt like this but right now i have no idea who to turn to or what to do.
I also worry about having a car as I currently have one on HP but I need a car for work purposes and visiting family regularly who live 100 miles away.
Also, having a mobile phone. Would I be able to keep my contract on or not?
Please help. I don't want this debt round my neck for the next 40 years.
EJ

Ineedaname

Hi there and welcome to you.

Have you spoken to any of the free debt advice charities yet? It sounds like you could do with some professional help here.

dojoman

Please contact one of the charities below, they will offer free and impartial advice.

https://www.nationaldebtline.co.uk/
https://www.citizensadvice.org.uk/
https://www.cccs.co.uk/



Below is a link you may found helpful about going BR?

https://forums.moneysavingexpert.com/discussion/1056083

Also this link to the Insolvency Service is useful!

http://www.insolvency.gov.uk/

silvercar

Every situation is different but generalising:

1. the mortgage lenders know that people get repossessed because they have no money, so they generally leave you well alone for a few years to get back on your financial feet before pursuing you for the debt.

2. They will often settle for a full and final settlement at a very small percentage of the debt size to go away. This is because dragging a small monthly payment out of people who can only afford very little is costly.

ej_blondie

What percentage of the debt could I be looking at paying back? It makes me feel sick to think this could be hanging around my neck for the next 40years. I dont know if bankruptcy could be the better option so I can make a fresh start. But then I worry about not having a car to get to my family and work.
I have contacted the CCCS who are calling me on Thursday an I have also contacted the solicitors dealing with the deficit for the mortgage company. Everyone seems to be very understanding but I'm just scared for the future I suppose. I really can't see a way out?

ej_blondie

And could I also say thank you for all your helpful replies.

Marine_life

ej_blondie wrote: »

Hi,
I recently had a house repossessed .............we originally bought it

Just a clarification.

You mention that "I" had a house repossed but then mention "we" bought it....

Is there someone else involved? In who's name is the borrowing?